{"id":482405,"date":"2026-02-18T06:23:19","date_gmt":"2026-02-18T06:23:19","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/482405\/"},"modified":"2026-02-18T06:23:19","modified_gmt":"2026-02-18T06:23:19","slug":"west-coast-pipeline-push-sparks-optimism-for-canadian-steelmakers","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/482405\/","title":{"rendered":"West Coast pipeline push sparks optimism for Canadian steelmakers"},"content":{"rendered":"

In the heart of the Canadian Shield, the Tenaris pipe mill in Sault Ste. Marie, Ont., has been running at record levels, thanks in large part to growing oil and gas production in Western Canada.\u00a0<\/p>\n

In 2025, the factory reached its highest-ever output<\/a> of seamless pipe in its 25-year history.\u00a0<\/p>\n

And it\u2019s on track to exceed that mark again in 2026, a milestone that reflects the company\u2019s critical role in the steel town\u2019s economy, as well as in Canada\u2019s broader energy supply chain.<\/p>\n

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A worker checks steel pipe at the Tenaris manufacturing facility in Sault Ste. Marie, Ont. Photo courtesy Tenaris<\/p>\n

Tenaris employs about 1,200 people nationwide, including roughly 800 in Sault Ste. Marie, manufacturing high-grade steel pipe that is shipped by rail to service centres in Alberta and British Columbia, where it supports oil and gas drilling and production.<\/p>\n

\u201cOur steel pipe manufacturing in the East allows oil and gas exploration to advance and flourish in the West,\u201d says Jessica Tett, communications manager for Tenaris in Canada.\u00a0<\/p>\n

\u201cAs the country strengthens its position as a global energy superpower, we are committed to powering that growth through our manufacturing, industrial expertise and support for Canada\u2019s energy industry.\u201d<\/p>\n

As momentum builds around discussions of a new oil pipeline to Canada\u2019s west coast, the country\u2019s steel producers are sounding a clear, unified message: this isn\u2019t just a project about energy transport \u2014 it\u2019s a chance to strengthen Canada\u2019s industrial core, support jobs and build supply chains that ensure national resilience.<\/p>\n

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Workers complete the \u201cgolden weld\u201d signifying mechanical completion of the Trans Mountain Expansion project on April 11, 2024 in the Fraser Valley between Hope and Chilliwack, B.C. Photo courtesy Trans Mountain Corporation<\/p>\n

Among other things, the recent energy agreement<\/a> between Alberta and Canada to pursue a major new export pipeline to reach Asian markets commits both governments to develop Canadian steel and pipe production supply chains.<\/p>\n

For steelmakers and manufacturers, the agreement signals a potential shift toward nation-building projects that prioritize Canadian materials, Canadian labour and Canadian expertise.<\/p>\n

A cornerstone of Canada\u2019s industrial economy<\/p>\n

Tenaris\u2019s experience reflects the broader importance of Canada\u2019s steel industry, which is a cornerstone of the national economy and a critical supplier to energy, construction, transportation and manufacturing sectors.\u00a0<\/p>\n

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Tenaris employees work with pipe threading equipment at the company\u2019s manufacturing facility in Sault Ste. Marie, Ont. Photo by Peter Power for the Canadian Energy Centre<\/p>\n

Canada\u2019s steel industry generates roughly $15 billion in annual output, directly employs about 23,000 people, and supports more than 100,000 additional jobs across related industries, according to<\/a> the Canadian Steel Producers Association (CSPA).<\/p>\n

Energy is one of the steel sector\u2019s most important markets.\u00a0<\/p>\n

The CSPA estimates oil and gas, wind towers and power generation together account for roughly 30 per cent of steel demand in Canada.<\/p>\n

\u201cWe\u2019re excited about it,\u201d said Fran\u00e7ois Desmarais, vice-president of trade and industry affairs at the CSPA, referring to the agreement and the prospect of a major new pipeline.\u00a0<\/p>\n

\u201cIt\u2019s a signal that we have an interest in the energy sector. It creates more certainty for our business.\u201d<\/p>\n

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A worker looks on as crews build the Coastal GasLink pipeline in B.C. The project was completed in November 2023. Photo courtesy Coastal GasLink<\/p>\n

Domestic supply in a volatile global market<\/p>\n

Industry leaders say expanding Canadian energy infrastructure has become increasingly important as steel producers face mounting international trade pressures.\u00a0<\/p>\n

The U.S. now charges a 50 per cent tariff on the first tonne of steel imported from any country, sweeping Canada into a broader move to deal with global steel oversupply.<\/p>\n

\u201cThe net was too wide, and we got caught in it,\u201d Desmarais said.\u00a0<\/p>\n

\u201cMany countries are trying to protect their national industries from surplus steel, particularly with China producing too much.\u201d<\/p>\n

Against that backdrop, building domestic demand through major energy projects could help offset lost export opportunities.<\/p>\n

\u201cWe supply about 50 per cent of steel consumption in Canada,\u201d Desmarais said.\u00a0<\/p>\n

\u201cThere\u2019s no reason why we can\u2019t supply more.\u201d<\/p>\n

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Steel pipe in storage for the Trans Mountain Expansion project in 2022. Photo courtesy Trans Mountain Corporation<\/p>\n

Tenaris, which sells most of its Canadian-made production domestically, says it has less exposure to U.S. tariffs but strongly supports federal efforts to maintain a level playing field by countering unfairly traded imports.<\/p>\n

\u201cMade-in-Canada steel is critical to Canadian sovereignty in our energy supply chain,\u201d Tett said.<\/p>\n

Manufacturing ripple effects<\/p>\n

The potential benefits of a west coast pipeline would extend well beyond steel mills.\u00a0<\/p>\n

Canadian Manufacturers & Exporters (CME) says the energy agreement reflects a positive shift in how governments view Canada\u2019s energy and industrial potential.<\/p>\n

\u201cEnergy policy is manufacturing policy,\u201d said Ryan Greer, CME\u2019s senior vice-president of public affairs and national policy.\u00a0<\/p>\n

\u201cCanadian manufacturers will supply steel, fabricated metal, valves, pumps, electrical components, coatings, heavy equipment, control systems and more.\u201d<\/p>\n

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An employee applies final adjustments on a new premium line at the Tenaris pipe manufacturing hub in Sault Ste. Marie, Ontario on October 31, 2022. Photo by Peter Power for Canadian Energy Centre<\/p>\n

Greer said megaprojects have become increasingly important as Canadian manufacturers navigate tariff uncertainty and volatile trade relationships.<\/p>\n

\u201cWhile we hope Canada and the U.S. can get North American trade back on a more predictable trajectory, it has become clear that Canada must assertively try to generate jobs, growth and prosperity in ways that aren\u2019t reliant on U.S. decision-making,\u201d he said.<\/p>\n

Becoming Canada\u2019s own best customer<\/p>\n

Steel producers say governments can maximize the economic benefits of a major pipeline by clearly identifying material needs early and prioritizing domestic procurement.<\/p>\n

\u201cMap out what the needs are or will be,\u201d Desmarais said. \u201cThat allows companies to make the business case to retool if necessary.\u201d<\/p>\n

With billions already invested in Canadian facilities \u2014 including $255 million Tenaris has invested in Sault Ste. Marie, since 2020 \u2014 industry leaders say Canada is well-positioned to deliver.<\/p>\n

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The \u201cGolden Weld\u201d marked mechanical completion of the Trans Mountain Expansion project on April 11, 2024. Photo courtesy Trans Mountain Corporation<\/p>\n

\u201cEverybody is doing it \u2014 the U.S., Europe and others are looking out for their own industries,\u201d Desmarais said.\u00a0<\/p>\n

\u201cCanada needs to do the same and become our own best customer.\u201d<\/p>\n

For companies like Tenaris, that approach would reinforce a truly national supply chain \u2014 one that starts in Ontario steel mills and ends at energy projects powering Canada\u2019s economic future.<\/p>\n

The unaltered reproduction of this content is free of charge with attribution to the Canadian Energy Centre.<\/p>\n","protected":false},"excerpt":{"rendered":"In the heart of the Canadian Shield, the Tenaris pipe mill in Sault Ste. Marie, Ont., has been…\n","protected":false},"author":2,"featured_media":482406,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[49,48,1007,2512,44,905,58574,1635,16681],"class_list":{"0":"post-482405","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-canada","8":"tag-ca","9":"tag-canada","10":"tag-construction","11":"tag-investment","12":"tag-news","13":"tag-ontario","14":"tag-pipelines","15":"tag-steel","16":"tag-supply-chain"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/482405","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=482405"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/482405\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/482406"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=482405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=482405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=482405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}